In the United States and in other countries, government controls have been placed on certain technology to prevent transfer to foreign nationals. The regulations governing such restrictions generally are complicated, at least in part because they depend on the technology in question and the nationality of potential recipients. Penalties for non-compliance may be civil and/or criminal, and so may include fines and imprisonment as well as loss of export privileges.
In the case of software, certain types of software, and software containing or using certain types of algorithms, may be subject to export controls. For example, software for use in or with military weapons may be included in a category of items that may not be exported to certain countries without government approval. Software not intended for military use still may be restricted, for example, if it includes certain types of encryption technology. This encryption technology may be publicly available, and export may be allowed, but only upon completion of required documents and/or approval.
At least in part because of the complexity of the rules, a company that has a software product or a product that contains computer software, particularly a non-military product, may have difficulty determining the export controls that are applicable to their product. The company may not even know what to look for, let alone understand the implications of the software tools and algorithms included in the company's software. This problem is compounded by the availability of encryption technology on internet web sites, such that it is possible for product developers to download and incorporate encryption technology into a company's products without knowledge or approval of management.